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Resolution 2020-31256 RESOLUTION NO. 2020-31256 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A SUBSTANTIAL AMENDMENT TO THE CITY'S 2018-2022 CONSOLIDATED PLAN AND FY 2019 ACTION PLAN TO INCLUDE THE AVAILABILITY AND PLANNED USE OF $564,276.00 IN COMMUNITY DEVELOPMENT BLOCK GRANT — CORONAVIRUS (CDBG-CV) FUNDING TO PREVENT, PREPARE FOR,AND RESPOND TO CORONAVIRUS; AND APPROVING AND AUTHORIZING THE CITY MANAGER TO: (1) RECAPTURE $3,596.02 IN COMMUNITY DEVELOPMENT BLOCKGRANT (CDBG) FUNDS, PREVIOUSLY ALLOCATED TO PUBLIC SERVICES FOR THE FY 2018 ACTION PLAN, AND REALLOCATE SAID FUNDS TO THE GROCERY PROGRAM; (2) RECAPTURE $151,481.89 IN CDBG FUNDS, PREVIOUSLY ALLOCATED TO THE CORAL APARTMENTS (795 81ST ST) REHABILITATION PROJECT FOR THE FY 2019 ACTION PLAN, AND REALLOCATE SAID FUNDS TO THE MADELEINE VILLAGE SEAWALL REHABILITATION PROJECT; (3) RECAPTURE $10,000.00 IN CDBG FUNDS, PREVIOUSLY ALLOCATED TO PROGRAM ADMINISTRATION FOR THE FY 2019 ACTION PLAN, AND REALLOCATE SAID FUNDS TO THE GROCERY ASSISTANCE PROGRAM; (4) RECAPTURE $181,237.00 IN HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM FUNDS, PREVIOUSLY ALLOCATED TO THE CORAL APARTMENTS PROJECT FOR THE FY 2019 ACTION PLAN, AND REALLOCATE SAID FUNDS TO THE MADELEINE VILLAGE SEAWALL REHABILITATION; AND (5) RECAPTURE$90,369.00 IN HOME PROGRAM FUNDS, PREVIOUSLY ALLOCATED TO HOMEOWNERSHIP ASSISTANCE FOR THE FY 2019 ACTION PLAN, AND REALLOCATE SAID FUNDS TO TENANT-BASED RENTAL ASSISTANCE; AND APPROVING A "SUBSTANTIAL AMENDMENT" TO THE FY 2018-22 CONSOLIDATED PLAN TO INCLUDE COMMUNITY DEVELOPMENT NEEDS AS A PRIORITY NEED,AND THE PROVISION OF PUBLIC FACILITIES AND INFRASTRUCTURE AND ECONOMIC DEVELOPMENT AS AN ASSOCIATED GOAL; AND AUTHORIZING THE CITY MANAGER TO: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATED TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) SUBMIT THE REQUISITE REVISED ACTION PLANS AND CONSOLIDATED PLAN; AND (3) SUBMIT A LETTER TO HUD REQUESTING USE OF AVAILABLE WAIVERS; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB-RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS. WHEREAS, the City is an entitlement recipient of Federal formula HUD grant programs as follows: Community Development Block Grant(CDBG)funds, and HOME Investment Partnerships (HOME) funds; and WHEREAS, the City expects to continue to receive entitlement funds from these grant programs to operate the City's housing and community development activities; and WHEREAS, the One-Year Action Plan for Federal funds is a requirement under the U.S. Department of Housing and Urban Development (HUD) formula grant programs, including the CDBG and HOME Programs; and WHEREAS, on April 2, 2020, HUD sent a letter to the City notifying of a special allocation of CDBG funds to be used to prevent, prepare for, and respond to coronavirus (COVID-19); and WHEREAS, this allocation was authorized by the Coronavirus Aid, Relief, and Economic SecurityAct(CARES Act),which was signed by President Trump on March 27, 2020,to respond to the growing effects of the public health crisis; and WHEREAS,the CARES Act has made available to the City$564,276.00 in CDBG Coronavirus funds(CDBG-CV)and the Administration is amending the 2018-2022 Consolidated Plan and 2019 Action Plan to enable the City to receive and administer these new funds; and WHEREAS, on April 9, 2020, HUD released a memo transmitting the CARES Act Flexibilities for CDBG Funds Used to Support Coronavirus Response Guide; and WHEREAS, HUD has authorized the following key federal regulation waivers that benefit the City as a result of COVID-19: permitting grantees to use CDBG-CV grant funds to cover or reimburse costs to prevent, prepare for, and respond to coronavirus regardless of the date on which such costs were incurred; eliminating the 15 percent cap on the amount of grant funds that can be used for public services activities for CDBG-CV and CDBG FY 2019 and FY 2020 funds; and allowing grantees to amend citizen participation plans to establish expedited procedures to include notice and reasonable opportunity to comment of at least 5 days; and WHEREAS, on April 10, 2020, HUD released a memo notifying the availability of waivers and suspensions for the HOME program requirements in response to the COVID-19 pandemic; and WHEREAS, the waivers include: increased cap on program administration expenses from 10% to 25% for FY 2019 & FY 2020; suspension of the 15% Community Housing Development Organization (CHDO) set-aside requirement for FYs 2017 through 2020; waiver of the match requirement for funds in a Major Disaster area between 10/1/2019 and 9/30/2021;allowance of self- certification of income, provided that on-site rent and income reviews are conducted within 90 days after the waiver period;waiver of on-site inspection requirements; elimination of the requirement to include an analysis of local market conditions before implementing a Tenant-Based Rental Assistance(TBRA)program; allowance of the immediate provision of TBRA without assessing rent reasonableness; allowance of payments up to 100% of rent, security deposit, and utilities until 12/31/2020; suspension of the requirement to have written tenant selection criteria until 12/31/2020; and extension of the HOME 4-year project completion deadline; and WHEREAS, the Administration will submit a letter to HUD notifying and requesting use of these waivers; and WHEREAS, the CDBG-CV recommendations are incorporated into the amended FY 2019 One- Year Action Plan as follows:$214,634.00 for rent and mortgage assistance; $25,000.00 for COVID- 19 testing for the elderly; $40,000.00 for emergency food assistance; and $200,000.00 for small business assistance; and $84,641.00 for administrative allowance; and WHEREAS, the Administration recommends that the following CDBG funds be recaptured and reallocated for use in response to the COVID-19 pandemic as follows: • $3,596.02 in CDBG FY 2018 funds, previously allocated for public services, to be reallocated to the grocery assistance program; and • $10,000.00 in CDBG FY 2019 funds, previously allocated for program administration, to be reallocated to the grocery assistance program; and WHEREAS, the Administration had initially recommended that $58,067.70 of HOME FY 2019 funds, previously allocated for homeowner assistance, be reallocated to the Tenant-Based Rental Assistance program; however, during the May 8,2020 Special City Commission meeting,the Mayor and City Commission directed the Administration to prioritize funds for qualified households in need of rental assistance; and WHEREAS, based on the direction of the City Commission, the Administration recommends that$90,369.00, instead of the $58,067.70, in HOME FY 2019 funds be reallocated to the Tenant- Based Rental Assistance program; and WHEREAS, in order to receive and allocate these funds as recommended, the 2019 Action Plan and corresponding 2018-2022 Consolidated Plan will need to be amended to include of Community Development Needs as a Priority Need and the Provision of Economic Development and Public Facilities and Infrastructure assistance as an Associated Goal, and Tenant-Based Rental Assistance as a goal utilizing HOME funds; and WHEREAS, as part of this amendment, the City has also revised the Citizen Participation Plan to include the 5-day comment period as indicated above and now authorized by HUD; and WHEREAS, the City continues to have unfunded capital needs for the rehabilitation of the seawall at the Madeleine Village Apartments, a 16-unit affordable housing property located at 7861- 7871 Crespi Blvd; and WHEREAS, this project was previously awarded $505,463.93, however, this amount is insufficient as the total estimated project cost is $838,182.82; and WHEREAS, the City has allocated $650,881.89 in CDBG and HOME funds to the rehabilitation of the recently acquired Coral Apartments, located at 795 81St St.; however, it has been determined that this amount is in excess of the 50% FEMA threshold based on the most recent property appraisal; and WHEREAS, if more than 50% of the Coral Apartments is rehabilitated, FEMA regulations would require that the habitable first floor level of the Coral Apartments be raised above the flood elevation of nine (9) feet (NGVD), which would not be feasible; and WHEREAS, therefore, the Administration would like to reallocate the funds in excess of the 50% threshold from the Coral Apartments project to fill the funding gap for the Madeleine Village Seawall as delineated below: • Reallocate $181,237.00 from HOME FY 2019 funds, previously allocated to the Coral Apartments, to the Madeleine Village Seawall rehabilitation; and • Reallocate $151,481.89 from CDBG FY 2019 funds, previously allocated to the Coral Apartments, to the Madeleine Village Seawall rehabilitation; and WHEREAS, the City advertised a Notice of Public hearing and Public 5-day Comment Period (March 2, 2020—April 2, 2020)for community development needs and the Analysis of Impediments to Fair Housing Choice (Al) with a public hearing was held on March 17, 2020; and WHEREAS, in accordance with applicable waiver made available through the CARES Act, the City advertised a Notice of a 5-day Public Comment Period (May 4, 2020 — May 8, 2020) for a Substantial Amendment to the 2018-2022 Consolidated Plan & FY 2019 Action Plan and Amendment to the Citizen Participation Plan; and WHEREAS, public comments received will be included in the submission of the action Plan to HUD for final review and approval; and WHEREAS,the City Manager is the HUD-designated agent for all formula grants,and executes the grant applications, agreements, and other applicable HUD documents on behalf of the City. NOW,THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve a substantial amendment to the City's 2018-2022 Consolidated Plan and FY 2019 Action Plan to include the availability and planned use of$564,276.00 in Community Development Block Grant— Coronavirus(CDBG-CV)funding to prevent, prepare for, and respond to Coronavirus;and approve and authorize the City Manager to:(1)recapture$3,596.02 in Community Development Block Grant (CDBG)funds, previously allocated to public services for the FY 2018 Action Plan, and reallocate said funds to the grocery program; (2)recapture$151,481.89 in CDBG funds, previously allocated to the Coral Apartments (795 81st St.) rehabilitation project for the FY 2019 Action Plan, and reallocate said funds to the Madeleine Village Seawall rehabilitation project; (3) recapture $10,000.00 in CDBG funds, previously allocated to program administration for the FY 2019 Action Plan, and reallocate said funds to the grocery assistance program; (4) recapture $181,237.00 in Home Investment Partnerships (HOME) program funds, previously allocated to the Coral Apartments for the FY 2019 Action Plan, and reallocate said funds to the Madeleine Village Seawall Rehabilitation; and (5) recapture $90,369.00 in HOME program funds, previously allocated to homeownership assistance for the FY 2019 Action Plan, and reallocate said funds to tenant-based rental assistance; and approve a"Substantial Amendment"to the FY 2018-22 Consolidated Plan to include community development needs as a priority need, and the provision of public facilities and infrastructure and economic development as an associated goal; and authorize the City Manager to: (1)execute all applicable documents related to the appropriation and allocation of these program funds; (2)submit the requisite revised Action Plans and Consolidated Plan; and (3)submit a letter to HUD requesting use of available waivers; and authorize the Mayor and City Clerk to execute agreements for sub-recipients of CDBG and HOME program funds; and further authorize the City Manager to execute City interdepartmental agreements for recipients of CDBG and HOME program funds. PASSED AND ADOPTED this /3 day of , 2020. ATTEST: 7—Zil---,,„._ Dan Gelber, Mayor g , LIIt�� Rafael E. Granado, ity Clerk CPN',8'1.2,5;,,, 1 'INCORP ORATED' s A" OV % AS TO '' QR~3 '��' ANGUAGE 'EXECUTION H..26```,, G` ii �a ity Attorney at Resolutions - C7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: May 13, 2020 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,APPROVING A SUBSTANTIAL AMENDMENT TO THE CITY'S 2018-2022 CONSOLIDATED PLAN AND FY 2019 ACTION PLAN TO INCLUDE THE AVAILABILITY AND PLANNED USE OF $564,276 IN COMMUNITY DEVELOPMENT BLOCK GRANT — CORONAVIRUS (CDBG-CV) FUNDING TO PREVENT, PREPARE FOR, AND RESPOND TO CORONAVIRUS; AND APPROVING AND AUTHORIZING THE CITY MANAGER TO: (1) RECAPTURE $3,596.02 IN COMMUNITY DEVELOPMENT BLOCKGRANT (CDBG) FUNDS PREVIOUSLY ALLOCATED TO PUBLIC SERVICES FOR THE FY 2018 ACTION PLAN AND REALLOCATE SAID FUNDS TO THE GROCERY PROGRAM; (2) RECAPTURE $151,481.89 IN CDBG FUNDS PREVIOUSLY ALLOCATED TO 795 81ST ST FOR THE FY 2019 ACTION PLAN AND REALLOCATE SAID FUNDS TO THE MADELEINE VILLAGE SEAWALL REHABILITATION; (3) RECAPTURE $10,000 IN CDBG FUNDS PREVIOUSLY ALLOCATED TO PROGRAM ADMINISTRATION FOR THE FY 2019 ACTION PLAN AND REALLOCATE SAID FUNDS TO THE GROCERY ASSISTANCE PROGRAM; (4) RECAPTURE $181,237.00 IN HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM FUNDS PREVIOUSLY ALLOCATED TO 795 81ST ST FOR THE FY 2019 ACTION PLAN AND REALLOCATE SAID FUNDS TO THE MADELEINE VILLAGE SEAWALL REHABILITATION; AND (5) RECAPTURE $58,067.70 IN HOME PROGRAM FUNDS PREVIOUSLY ALLOCATED TO HOMEOWNERSHIP ASSISTANCE FOR THE FY 2019 ACTION PLAN AND REALLOCATE SAID FUNDS TO TENANT-BASED RENTAL ASSISTANCE; AND APPROVING A "SUBSTANTIAL AMENDMENT" TO THE FY 2018-22 CONSOLIDATED PLAN TO INCLUDE COMMUNITY DEVELOPMENT NEEDS AS A PRIORITY NEED AND THE PROVISION OF PUBLIC FACILITIES AND INFRASTRUCTURE AND ECONOMIC DEVELOPMENT AS AN ASSOCIATED-GOAL; AND AUTHORIZING THE CITY MANAGER TO: (1) EXECUTE ALL APPLICABLE DOCUMENTS RELATED TO THE APPROPRIATION AND ALLOCATION OF THESE PROGRAM FUNDS; (2) SUBMIT THE REQUISITE REVISED ACTION PLANS AND CONSOLIDATED PLAN; AND (3) SUBMIT A LETTER TO HUD REQUESTING USE OF AVAILABLE WAIVERS; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS FOR SUB- Page 66 of 865 RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE CITY INTERDEPARTMENTAL AGREEMENTS FOR RECIPIENTS OF CDBG AND HOME PROGRAM FUNDS. RECOMMENDATION The Administration recommends approving the Resolution. BACKGROUND/HISTORY The Five-Year Consolidated Plan is a federal requirement for all U.S. Department of Housing and Urban Development (HUD) entitlement cities. The City of Miami Beach is a HUD- designated entitlement city as determined by the decennial census information on population growth lag, over-crowding, age of housing stock, and poverty. The City of Miami Beach has been a Community Development Block Grant(CDBG)entitlement community since 1975. The HOME Program was started in 1992 to provide funding specifically for affordable housing. As an entitlement community, the City automatically qualifies for an annual allocation of federal funding under HUD's grant programs. HUD requires each entitlement community to submit an annual One-Year Action Plan describing how it will utilize funding and resources to address priority needs identified in the City's Consolidated Plan. The One-Year Action Plan is a component of the Five-Year Consolidated Plan filed with HUD. CARES Act On April 2, 2020, HUD sent a letter to the City notifying of a special allocation of CDBG funds to be used to prevent, prepare for, and respond to coronavirus (COVI D-19). This allocation was authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed by President Trump on March 27, 2020, to respond to the growing effects of the public health crisis. The CARES Act has made available to the City $564,276 in CDBG Coronavirus funds (CDBG-CV). The Administration is making amendments to the 2018-2022 Consolidated Plan and 2019 Action Plan to enable the City to receive and administer these new funds. On April 9, 2020, HUD released a memo transmitting the CARES Act Flexibilities for CDBG Funds Used to Support Coronavirus Response Guide. Below are key federal regulation waivers that benefit the City that HUD has authorized as a result of COVI D-19: • Grantees may use CDBG-CV grant funds to cover or reimburse costs to prevent, prepare for, and respond to coronavirus regardless of the date on which such costs were incurred; • Elimination of the 15 percent cap on the amount of grant funds that can be used for public services activities for CDBG-CV and CDBG FY 2019 and FY 2020 funds; and • Allows grantees to amend citizen participation plans to establish expedited procedures to include notice and reasonable opportunity to comment of at least 5 days. On April 10, 2020, HUD released a memo notifying the availability of waivers and suspensions for the HOME program requirements in response to the COVID-19 pandemic. The waivers include: Page 67 of 865 • Increased cap on program administration expenses from 10% to 25% for FY 2019 & FY 2020; • Suspension of the 15% Community Housing Development Organization (CHDO) set- aside requirement for FYs 2017 through 2020; • Waiver of the match requirement for funds in a Major Disaster area between 10/1/2019 and 9/30/2021; • Self-certification of income is allowed, provided that on-site rent and income reviews are conducted within 90 days after the waiver period; • Waiver of on-site inspection requirements; • Eliminates the requirement to include an analysis of local market conditions before implementing a TBRA program; • Allows the immediate provision of Tenant-Based Rental Assistance (TBRA) without assessing rent reasonableness; • Permits payments up to 100% of rent, security deposit, and utilities until 12/31/2020; • Suspends requirement to have written tenant selection criteria until 12/31/2020; and • Extends the HOME 4-year project completion deadline. The Administration will submit a letter to HUD notifying and requesting use of these waivers. ANALYSIS Below is a summary of the proposed use of the CDBG-CV funds: CDBG-CV Allocation $564,276.00 Activity/Project Amount Program Administration $84,641.00 Public Services (15% cap has been waived) Rent& Mortgage Assistance $214,635.00 COVI D-19 testing for elderly $25,000.00 Emergency Food Assistance (non- $40,000.00 elderly) Community Development Small Business Assistance $200,000.00 Rent & Mortgage Assistance: This program provides assistance to qualifying Miami Beach residents who are in danger of becoming homeless due to their inability to pay their monthly rent. Assistance will include up to three months of rent payable to the landlord upon verification of eligibility and financial position. COVID-19 Testing for Elderly: Funds will offset the costs associated with the City's Fire Department staff escorting testing professionals to the homes of elderly residents receiving COVID-19 testing. Emergency Food Assistance: Groceries will be provided to qualifying Miami Beach residents experiencing financial hardship. Small Business_Assistance: This program will provide assistance to small businesses (6-12 employees) impacted by COVID-19 in the form of a forgivable loan. Business may receive up to $10,000 to pay for normal business expenses. The business must be able to retain at least one job Page 68 of 865 for a low- to moderate- income resident employee for a one-year period. Below is a summary of funds that will be recaptured and reallocated to be used to respond to COVID-19: Recapture and Reallocation Recommendations Original Activity Amount Funding Source Proposed Activity Affordable Housing Homeownership Assistance $58,067.70 HOME FY 2019 Tenant-Based Rental Assistance Public Services UNI DAD of Miami Beach— Project Link $1,182.55 CDBG FY 2018 Homeless Outreach Team $5.41 CDBG FY 2018 Boys and Girls Club of Miami- $0.62 CDBG FY 2018 Grocery Assistance Dade Program Grocery Assistance Program $2,407.43 CDBG FY 2018 CDBG Program $10,000 CDBG FY2019 Administration TBRA: HOME funds will be used to provide direct assistance to low-income households who need help paying their rent. TBRA is a rental subsidy that helps make up the difference between what a renter can afford to pay and the actual rent for a home. This assistance will be provided to households earning up to 80% Area Median Income prior to the COVID-19 crisis. Assistance provided under this category expires on December 31, 2020. Grocery Assistance Program: This program provides grocery delivery to elderly Miami Beach residents. In order to receive and allocate these funds as recommended, the following amendments to 2019 Action Plan and corresponding 2018-2022 Consolidated Plan will be implemented: • Inclusion of Community Development Needs as a Priority Need and the Provision of Economic Development and Public Facilities and Infrastructure assistance as an Associated Goal; and • Inclusion of tenant-based rental assistance as a goal utilizing HOME funds. As part of this amendment, the City has also revised the Citizen Participation Plan to include the 5- day comment period as indicated above and now authorized by HUD. Madeleine Village Seawall Rehabilitation The City continues to have unfunded capital needs for the rehabilitation of the seawall at the Madeleine Village Apartments. The Madeleine Village is a 16-unit affordable housing property located at 7861-7871 Crespi Blvd. This project was previously awarded $505,463.93. However, this amount is insufficient as the total estimated project cost is $838,182.82. The City has allocated $650,881.89 in CDBG and HOME funds allocated to the recently acquired Coral Apartments. However, it has been determined that this amount is in excess of the 50% FEMA threshold based on the most recent property appraisal. If more than 50% of the Property is rehabilitated, FEMA regulations would require that the habitable first floor level of the Property be raised above the flood elevation of nine (9)feet (NGVD), which would not be feasible. Therefore, the Administration would like to reallocate the funds in excess of the 50% threshold from the Coral Apartments Project to fill the funding gap for the Madeleine Village Seawall as delineated below: Original Activity Amount Funding Source Proposed Activity Coral Apartments (795 81st St.) $181,237.00 HOME FY 2019 Madeleine Village Rehabilitation Seawall Page 69 of 865 Coral Apartments (7861-71 Crespi Blvd.) (795 81st St.) $151,481.89 CDBG FY 2019 Rehabilitation Rehabilitation Citizen Participation In accordance with 24 CFR 91.05(c)(2) and subpart B of the federal regulations, the following applicable waiver made available through the CARES Act will be enacted by the City relative to citizen participation compliance: The City advertised a Notice of a 5-day Public Comment Period (May 4, 2020 — May 8, 2020) for a Substantial Amendment to the 2018-2022 Consolidated Plan & FY 2019 Action Plan and Amendment to the Citizen Participation Plan. Public comments received will be included in the submission of the action Plan to HUD for final review and approval. FINANCIAL INFORMATION Expenditures are tied to federal CDBG and HOME funds and will not impact General Fund. CONCLUSION The Administration recommends approval and authorization for the Substantial Amendment to the 2018-2022 Consolidated Plan & FY 2019 Action Plan and Amendment to the Citizen Participation Plan and authorizing the City Manager to execute all required documents. Applicable Area Citywide Is this a "Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? No No Legislative Tracking Housing and Community Services ATTACHMENTS: Description o Resolution Page 70 of 865